New York Court Orders Crypto Lender Genesis To Comply With Subpoena In TerraUSD Collapse Case

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This article has been republished with permission from Binance News.

According to CoinDesk, a New York court has ordered crypto lender and trading company Genesis to comply with a subpoena within five days, after failing to meet the previous deadline of October 9. The subpoena is related to the 2022 collapse of the terraUSD stablecoin, which sent shockwaves through the crypto markets. The Securities and Exchange Commission (SEC) subsequently sued Terraform Labs, the company behind the token, and co-founder Do Kwon for misleading investors.

Judge Jed Rakoff stated in a court order dated Friday that the Genesis Entities have not produced any documents in response to the subpoenas. The legal requests for information were sent by the defendants to Genesis Global Capital, Genesis Global Holdco, and Genesis Global Trading on September 12. Genesis shares a parent company with CoinDesk, Digital Currency Group. The information sought is not detailed in the court order.

The company made billions in loans to the now-defunct hedge fund Three Arrows Capital, which was exposed to the stablecoin. Three Genesis entities filed for bankruptcy in January 2023, and the trading arm shuttered its U.S. spot market business in September. Judge Rakoff is also grappling with how to extract information from Kwon in connection with the case. Kwon’s lawyers have argued that he cannot come to the U.S. as he is serving a jail sentence in Montenegro for possession of a fake passport. However, Rakoff stated in a September order that the laws of physics do not make it impossible for Kwon to be deposed and warned that Kwon would not be allowed to make any declaration in the case without having been available for cross-questioning. A spokesperson for Genesis did not immediately respond to a request for comment.



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